What is COLA and How It’s Calculated
COLA stands for Cost-of-Living Adjustment. Each year, the Social Security Administration (SSA) increases benefit amounts based on inflation, so that beneficiaries don’t lose ground to rising prices.
The specific method:
- SSA uses the Consumer Price Index for Urban Wage Earners & Clerical Workers (CPI-W) data for July, August, and September of the current year compared with the same three months the previous year.
- That year-over-year percentage change becomes the COLA for the next calendar year.
- The new COLA takes effect starting January 1 of the next year (i.e. the 2025 COLA begins Jan 2025).
One caveat: Medicare premiums (especially Part B) are often deducted from Social Security checks. A rise in those premiums can offset, or even exceed, the COLA bump for some beneficiaries.
5 Responses
guess I have to save for another year to get my private jet (LOL)
Our government should be ashamed of the minute increase they are ‘giving’ us with our money. They never blink to give billions to a country that would p– on us if we were on fire.
2.7% in today’s economy won’t substantially feed a retired couple for a day or two, especially after they take the raise out faster than they put it in to pay Medicare. The saddest part is that too many are getting Medicare who never put in a penny and are receiving maximum benefits.
This is a disgrace, abused, a joke, and a shame that we get insulted with this 2.7%…..when they are getting interest from the money they had collected when we were working. The minimum we should get is 5% for our Seniors of all the money we gave you through our whole life. Trump love to give money to countries like Argentina…that is our taxes. You fool.
I am tired of hearing people complain about the way things are. You get what you voted for! If you don’t like what is happening than stop complaining and vote the people out of office who have so little regard for the welfare of senior citizens. Don’t say this not about politics because it is and the day many of us realize it the sooner, we will see the changes you would like to see.
Definitely a shameful amount for those of us who are struggling to keep up with inflation. Also shameful is the fact that we are paying so much in taxes to aid and abet the millions of illegal aliens who suck the air out of us with free medical, schooling etc…